Math future value

Question

Find the future value

n=45

i=0.02

pmt=40

fv=

Answer 1

n=45, i=.02, pmt =40

pmt = P(r(1+r)^n/((1+r)^n -1)

40 = P(.02)((1.02)^45/((1.02)^45 -1)

P=1179.606395

FV = P(1+r/n)^nt with r=.02, =45, but unknown t=time = number of years

FV = about 1180(1+.02/45)^45t

= 1180(2251/2250)^45t

n=45 is unusual, as it's the number of compounding periods per year

usually it's 1, 2, 4, 12 or 365. 45 would be 45 time annually, or 3 3/8 times per month, not quite weekly, but almost